Pound Sterling Price News and Forecast: GBP/USD bulls turn cautious amid overbought conditions
|Daily technical and trading outlook – GBP/USD
GBP/USD - 1.4132.. Sterling was the standout performer vs usd among its G7 peers on Tue. Price climbed to a 34-month high of 1.4098 in Europe n despite a retreat to 1.4055 in NY, cable rallied to 1.4117 on renewed usd's weakness.
On the bigger picture, despite cable's brief break of 2016 post-Brexit low of 1.1491 to a near 35-year trough of 1.1412 in mid-Mar 2020 on safe-haven usd's demand following free fall in global stocks, sterling's rally to as high as 1.2812 (Jun) on broad-based usd's weakness, then to an 8-month peak of 1.3482 in Sep suggests a major bottom is in place. Read more...
GBP/USD Analysis: Bulls turn cautious amid overbought conditions, ahead of BoE speakers
The GBP/USD pair prolonged its recent bullish trajectory and surged to fresh 34-month tops, beyond the 1.4200 mark during the Asian session on Wednesday. The momentum marked the fifth consecutive day of a positive move and was supported by a combination of factors. The sterling remained well supported by the impressive pace of COVID-19 vaccinations in Britain, the UK government's plan to ease current lockdown measures and Tuesday's upbeat UK employment details. UK Prime Minister Boris Johnson unveiled a new four-step plan to end restrictions by 21 June and lifted hopes for a swift UK economic recovery. On the economic data front, the latest UK jobs report showed that Claimant Count unexpectedly dropped by 20.0K in January as against consensus estimates pointing to an increase of 35K. Adding to this, the previous month's reading was also revised down to -20.4K, while the unemployment rate matched market expectations and edged higher to 5.1%. Read more...
GBP/USD Price Analysis: Overbought RSI conditions warrant caution for bulls
GBP/USD is consolidating the vertical rise to 35-month highs of 1.4234, as the bulls are lacking follow though impetus after failing to recapture the 1.4200 level.
At the press time, the cable trades at 1.4175, adding 0.49% on the day. The spot moves away from the higher levels despite the renewed weakness in the US dollar across the board. Therefore, the cautious tone seen around the major could be mainly attributed to the overbought conditions on the Relative Strength Index (RSI), given the daily timeframe. Read more...
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